Kenneth Dart entity boosts Flutter (NYSE: FLUT) exposure via new swap
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
DART KENNETH BRYAN reported open-market purchase transactions in this Form 4 filing.
Flutter Entertainment plc disclosed that an entity owned by major shareholder Kenneth Bryan Dart entered into a new total return swap referencing 195,649 notional shares of Flutter common stock at a $102.2761 per-share reference price. The swap is scheduled to terminate on March 2, 2028 and will be cash-settled, with Dart’s entity paying the counterparty if the share price falls below the reference price and receiving payments if it rises above it.
The structure also has Dart’s entity paying monthly interest based on OBFR while receiving dividend-equivalent payments on the referenced shares. According to the filing, Lake Michigan Limited is the direct party to this swap, and LBS Limited is party to previously reported swaps on 7,453,418 notional shares, bringing the aggregate notional position to 8,242,509 shares, which Dart may be deemed to beneficially own to the extent of his pecuniary interest.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 195,649 shares ($20,010,217)
Net Buy
1 txn
Insider
DART KENNETH BRYAN
Role
10% Owner
Bought
195,649 shs ($20.01M)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | Total Return Swap | 195,649 | $102.2761 | $20.01M |
Holdings After Transaction:
Total Return Swap — 8,242,509 shares (Indirect, See footnote)
Footnotes (1)
- The reference price for the Swap is $102.2761 per share. The Swap is scheduled to terminate on March 2, 2028, at which time the Swap will be cash-settled. Under the terms of the Swap, at maturity: (i) the Reporting Person will be obligated to pay to the counterparty any decrease in the market price of the referenced shares below the reference price, and (ii) the counterparty will be obligated to pay the Reporting Person any increase in the market price of the referenced shares above the reference price. The Swap requires the Reporting Person to pay monthly interest to the counterparty on the financing leg of the Swap at a rate based on OBFR. Additionally, the Reporting Person is entitled to receive payments from the counterparty equal to any dividends paid on the referenced shares during the term of the Swap. Lake Michigan Limited is the party to the reported transaction and direct "holder" of the "notional" shares. LBS Limited is a party to previously reported swap transactions that provide an aggregate position in 7,453,418 "notional" shares. As owner of Lake Michigan Limited and LBS Limited, Mr. Dart may be deemed to beneficially own the reported securities but disclaims such beneficial ownership except to the extent of his pecuniary interest therein.
Key Figures
New swap notional size: 195,649 notional shares
Swap reference price: $102.2761 per share
Swap maturity date: March 2, 2028
+2 more
5 metrics
New swap notional size
195,649 notional shares
Total return swap referencing Flutter common stock
Swap reference price
$102.2761 per share
Price level used to determine cash settlement at maturity
Swap maturity date
March 2, 2028
Scheduled termination date; swap will be cash-settled
Previously reported swap position
7,453,418 notional shares
Aggregate notional shares under swaps via LBS Limited
Aggregate notional position after transaction
8,242,509 shares
Total notional Flutter shares referenced across swaps following this trade
Key Terms
Total Return Swap, reference price, cash-settled, OBFR, +2 more
6 terms
Total Return Swap financial
"disclosed that an entity owned by major shareholder Kenneth Bryan Dart entered into a new total return swap referencing 195,649 notional shares"
A total return swap is a private contract where one party pays the full economic performance of an asset (income plus price changes) to another party, while receiving a set payment such as a fixed rate or short-term interest in return. It matters to investors because it lets someone gain or shed exposure to an asset’s gains or losses without owning it, offering a way to borrow, hedge, or take leveraged positions while relying on the other party to make payments.
reference price financial
"The reference price for the Swap is $102.2761 per share."
cash-settled financial
"The Swap is scheduled to terminate on March 2, 2028, at which time the Swap will be cash-settled."
Cash-settled describes a financial contract that is resolved by paying the monetary difference between agreed and actual prices, instead of delivering the underlying asset. For investors, it matters because it simplifies trades—like settling a bet with cash rather than handing over the item—and affects liquidity, tax treatment, and counterparty exposure, since you receive or pay only the value change rather than owning or transferring the actual security or commodity.
OBFR financial
"the Swap at a rate based on OBFR."
beneficially own financial
"Mr. Dart may be deemed to beneficially own the reported securities but disclaims such beneficial ownership"
Beneficially own means having the economic rights and risks of a security—such as the right to receive dividends, sell the shares, or profit from price changes—whether or not your name appears on the official share register. Think of it like renting a car: you use it and reap the benefits even if the title lists someone else. Investors care because beneficial ownership determines who truly controls value, must be disclosed under securities rules, and can signal potential influence or trading activity that affects a stock’s price.
FAQ
What insider transaction was reported for Flutter (FLUT)?
An entity owned by Kenneth Bryan Dart entered a new total return swap referencing 195,649 notional Flutter common shares. The swap functions economically like synthetic exposure to the stock, with cash settlement based on future share price movements versus a fixed reference price.
What are the key terms of Kenneth Dart’s new Flutter total return swap?
The swap references 195,649 notional Flutter shares at a $102.2761 reference price and is scheduled to terminate on March 2, 2028. It will be cash-settled, with payments based on the difference between future market prices and the reference price.
How does the total return swap affect Kenneth Dart’s overall Flutter exposure?
LBS Limited previously entered swaps covering 7,453,418 notional Flutter shares. With Lake Michigan Limited’s new 195,649-share swap, the aggregate notional position rises to 8,242,509 shares, which Dart may be deemed to beneficially own to the extent of his pecuniary interest.
How do cash flows work under this Flutter total return swap?
At maturity, Dart’s entity pays the counterparty any decline in price below $102.2761 and receives any increase above it. During the term, it pays monthly interest based on OBFR and receives payments equal to dividends on the referenced shares.